Boeing 757's are Still Sexy

God help me but airplanes are cool. I freely admit that there are certain aircraft that I classify as "good looking" and the Boeing 757 is one of them. I don't know what it is...maybe the combination of a long sleek hull with big engines hanging off the wings...but its one cool flying machine made even cooler when Northwest put winglets on them.

Northwest has big plans for these putting the 757 into a not so traditional role, international flying. The Cranky Flier has a good update on this as does IAG here. Photo credit goes to IAG as well. Nice!

UPDATE 5 - September Airline Results Extravaganza

Here's a quick summary on all the airline results that I have seen so far:

AirTran
Sept RPM=950 Million (+11.6%) Load Factor=61.8 % (-9.4) ASM=1.5 Billion (+28.6%)
YTD RPM=10.4 Billion (+24.7%) Load Factor=74.1 % (-.2) ASM=14.0 Billion (+25.0%)

Alaska
Sept RPM=1.4 Billion (+5.9%) Load Factor=73.6% (+1.2) ASM=1.9 Billion (+4.2%)
YTD RPM=13.6 Billion (+6.0%) Load Factor=77.5% (+.9) ASM=17.5 Billion (+4.7%)

American (without American Eagle)
Sept RPM=10.6 Billion (-1.4%) Load Factor=75.5% (-.7) ASM=14.0 Billion (-.5%)
YTD RPM=106.2 Billion (+1.1%) Load Factor=80.5% (+1.8) ASM=131.8 Billion (-1.1%)

ATA (Scheduled Service)
Sept RPM=299.0 Million (-37.6%) Load Factor=74.5 % (+3.6) ASM=400.0 Million (-40.6%)
YTD RPM=3.1 Billion (-43.4%) Load Factor=80.0 % (+10.2) ASM=3.8 Billion (-50.6%)

Continental (Mainline and Regional)
Sept RPM=6.9 Billion (+11.5%) Load Factor=78.6% (+1.2) ASM=8.8 Billion (+9.9%)
YTD RPM=67.7 Billion (12.6%) Load Factor=81.0% (+1.7) ASM=83.6 Billion (+10.2%)

Delta
Sept RPM=9.1 Billion (-3.4%) Load Factor=74.6% (+1.5) ASM=12.2 Billion (-5.4%)
YTD RPM=88.2 Billion (-4.5%) Load Factor=78.8% (+1.5) ASM=112.0 Billion (-6.2%)

Frontier
Sept RPM=616.5 Million (+11.3%) Load Factor=67.6% (-3.4) ASM=911.6 Million (+17.0%)
YTD RPM=6.4 Billion (+17.7%) Load Factor=77.8% (+1.4) ASM=8.2 Billion (+15.7%)

Hawaiian
Sept RPM=548.8 Million (-4.0%) Load Factor=83.1% (-6.0) ASM=660.3 Million (+2.9%)
YTD RPM=5.1 Billion (+2.1%) Load Factor=86.8% (+0.1) ASM=5.9 Billion (+2.0%)

JetBlue
Sept RPM=1.6 Billion (+8.2%) Load Factor=72.6% (-5.1) ASM=2.3 Billion (+15.8%)
YTD RPM=17.5 Billion (+16.5%) Load Factor=78.8% (+1.5) ASM=21.3 Billion (+22.9%)

Northwest
Sept RPM=6.2 Billion (-5.5%) Load Factor=81.3% (+1.3) ASM=7.6 Billion (-7.1%)
YTD RPM=59.1 Billion (-6.5%) Load Factor=84.7% (+3.0) ASM=69.8 Billion (-9.8%)

Republic
Sept RPM=534,827(+49.0%) Load Factor=66.9% (+1.9) ASM=799,018(+44.7%)
YTD RPM=1.8 Million (+56.8%) Load Factor=72.9% (+4.7) ASM=2.5 Million (+46.5%)

Spirit
Sept RPM=299.0 Million (+15.0%) Load Factor=70.0% (-2.4) ASM=427.0 Million (+18.8%)
YTD RPM=3.4 Billion (-4.0%) Load Factor=72.4% (-1.0) ASM=4.3 Billion (-2.7%)

Southwest (System)
Sept RPM=5.2 Billion (+9.8%) Load Factor=67.2%(-.2) ASM=7.7 Billion (+10.1%)
YTD RPM=50.9 Billion (+12.9%) Load Factor=74.0% (+2.9) ASM=68.7 Billion (+8.4%)

United (System)
Sept RPM=9.3 Billion (+1.3%) Load Factor=79.5%(-.7) ASM=11.6 Billion (+2.3%)
YTD RPM=89.0 Billion (+3.5%) Load Factor=82.8% (+.9) ASM=107.6 Billion (+2.3%)

US Airways (Combined US Airways, America West and Regional)
Sept RPM=4.8 Billion (-4.8%) Load Factor=72.2 % (-.5) ASM=6.6 Billion (-4.2%)
YTD RPM=48.1 Billion (-6.8%) Load Factor=78.8 % (+2.1) ASM=61.1 Billion (-9.3%)

Update 1 - Added JetBlue
Update 2 - Added Frontier and Spirit
Update 3 - Added Southwest and alphabetized
Update 4 - Added Northwest
Update 5 - Added Hawaiian

Northwest and Mechanics Have Tentative Agreement

Northwest Airlines and its mechanics represented by AMFA have finally reached a tentative contract agreement (Yahoo!). The agreement could provide monetary relief to striking mechanics in one of two ways. First, they can accept layoff status and pull in layoff pay, one week per year employed up to 5 weeks total. Doing so also makes them eligible for furloughed status for up to two years. Or they can choose termination and receive one week per year employed up to 10 weeks total. Nothing changes regarding the mechanics now working for Northwest though mechanics accepting the layoff option are eligible to apply for open positions. Finally, Northwest would agree to halt the appeals process on a recent ruling that allowed striking mechanics to claim unemployment benefits.
Despite the possibility of monetary relief for the mechanics most of this agreement is really a final victory for Northwest. Look at the way the terms skew the payouts. It sweetens the pot for senior mechanics take the "I quit" option. You can bet that this offer is going to cost Northwest less than it would to continue unemployment benefit payouts while racking up legal fees trying to appeal the ruling of the courts on that matter. The agreement doesn't do anything to change current contract terms for pay scale or benefits and doesn't bring any jobs for striking mechanics. Moving on...nothing more to see here.

Northwest and Flight Attendants Must go Through the Motions

The National Mediation Board (NMB) told Northwest Airlines and its flight attendants represented by the AFA-CWA to get back to the negotiating table yesterday. I think you could almost hear the heavy sigh from the NMB as they rubber stamped this decision. No one expected them to declare an impasses despite being requested to do just that by the AFA-CWA. By the same token I think there are serious doubts by many, including the NMB, that telling the two sides to negotiate again will change anything. The two remain worlds apart. Interesting that neither Northwest or the AFA-CWA issued press releases this morning. Normally both sides have prepared statements canned and ready to rock. Are they waiting each other out to see what the posture will be?

Continental Airlines and the Golden Share

Surely Continental Airlines makes a pretty attractive partner when it comes to all the airline merger-mongering of late. Ever wonder why nothing seems to materialize? I know I was until I read this Reuters article . A long time ago in a galaxy far far away Northwest Airlines owned a boat load of Continental Airlines stock. That is until the Department of Justice sued Northwest in 2001 for anti-competitive practices, ultimately forcing the airline to sell all but one of their shares. Ahhhh but that one share, the golden share. Golden because it gives Northwest the right to veto any merger involving Continental. I am pretty sure Northwest will keep Continental on a short leash. Northwest and Continental have some pretty extensive code sharing arrangements. Plus a Continental merger would put Northwest at a disadvantage.

Northwest Flight Attendants Set the Tone for Upcoming Meeting

The AFA-CWA wasted no time in setting the tone for the Sept 26 meeting between Northwest flight attendants and the airline at the National Mediation Board (NMB). In a statement today the AWA-CWA states they have asked the NMB to declare an impasses to invoke a 30 day cooling off period prior to a strike. Kinda throws a bucket of ice water on any warm fuzzies you might have had about this meeting next week doesn't it.

I'll point out the rhetoric the AFA-CWA is using because, again, I think its indicative of the desparation of their strike tactic.

"When management unilaterally cut flight attendant pay, benefits and work rules, they mocked the integrity of the NMB's role in promoting consensual resolution of labor disputes," said Patricia Friend, AFA-CWA International President.

So apparently the NMB should be offended by Northwest's actions and its the AFA-CWA's job to point that out? Once again they are casting a wide net trying to gather others underneath the umbrella of their "cause". Airline consultant Michael Boyd, who tends to say some pretty smart stuff has this quote regarding the AFA-CWA's position:

"It moves it closer to a resolution," said airline consultant Michael Boyd. "Frankly, I think the flight attendants have gotten stuck in a difficult situation. They may have maneuvered themselves into a corner."

Exactly.

International Routes are all the Rage

I have posted several times that the trend will be for legacy carrier in the US to build their international routes. Seriously, I said it here, here and even way back here and here. Why? First, they don't have much in the way of competition from low cost carriers. They are competing with other legacy carriers so the playing field is mostly level. Second, international routes have a better profit margin right now when compared to domestic routes where they face intense competition from low cost carriers.

China is one of the big battle grounds for international expansion. Not surprisingly the list of competitors is exclusively made up of legacy carriers. Northwest Airlines, American Airlines, Continental Airlines and United Airlines are all making their cases to the government (and the public) on why they should be chosen for new China routes that are will be awarded. The Cranky Flier has a really nice summary of how this competition is lining up and who may have an advantage. Go check it out.

The Gavel Falls Yet Again on Northwest Flight Attendants

The latest effort by Northwest Airlines flight attendants to invoke their right to strike has once again been thwarted. The courts have overturned the decision made by the bankruptcy judge and have granted Northwest Airlines an injunction preventing its flight attendant from striking. Simply put, No Strike for You!

I think you can measure the desperation in the efforts of the AFA-CWA on behalf of the Northwest attendants. All you need to do is look at the rhetoric in their press release sporting the catchy title "Court Tramples Right to Strike". They have resorted to wholesale condemnation of the legal system and corporate greed. They paint broad strokes in attempt to spread this issue to the protection of the "working family" and "...not only for Northwest flight attendants, but for all flight attendants who will walk in our footsteps". You see words like "fight" and "crusade" sprinkled in for good measure. I think its safe to say that this is the end game for their strike tactics.

Update: Please don't confuse the opinion in this post with support for the tactics that Northwest is using on this or any other union. While I do believe pay cuts are necessary I believe the airlines are given far to much latitude under bankruptcy to impose these cuts. I believe this ham-fisted approach is unwarranted and ultimately counter-productive.

Courts to Northwest Airline: 25 Percent Paycuts are a Lockout

The Minnesota Court of Appeals has granted Northwest Airlines mechanics who went on strike last year the right to claim unemployment benefits from the state of Minnesota. While this is really good news for some 1600 mechanics that's not what really drew my attention to this story. What caught my eye was the reason the court made its decision. The court determined that the 25% pay cut that was imposed by Northwest Airlines constituted a lock out. Now that is interesting. Not because it could help the cause of striking mechanics but because of the timing of this ruling in conjunction with an imminent strike by its flight attendants for the same reason, pay cuts.

Northwest Airlines Can Use Its Compass

Compass..as in Compass Airlines. Northwest Airlines' new subsidiary received the go ahead from the Department of Transportation to start operations. Compass will be the new commuter airline for Northwest after the "Big Red Tail" unceremoniously dumped its long time partner Mesaba Airlines. This along with Northwest using its bankruptcy to halt all payments drove Mesaba to bankruptcy as well. The relationship between the two was often contentious especially when it came to wrangling with the pilot's union to decide which flights Mesaba could actually operate for Northwest. Reports indicate that Northwest intends to start using Compass next March to fly smaller aircraft ranging from 34 to 69 seats.
This is starting to become a trend. JetBlue and Frontier are both planning similar ventures. Could this be the pattern for the new age airline?

Northwest Flight Attendants May Create Their Own CHAOS

A recent update to the Northwest flight attendant union website is once again encouraging its members to rally to behind plans for a CHAOS (Create Havoc Around Our System) strike. The approach should worry any flight attendant at Northwest that wants to keep a job. Union leadership believes a strike will, in their own words, "level the playing field"

"We remain committed to reaching a negotiated agreement with the company regardless of the hurdles along the way," said Mollie Reiley, Interim Master Executive Council President. "However, at this time it appears that the company is more focused on their legal strategy than meaningful discussions. Until the time comes when they are willing to sit down and negotiate a fair contract, it is necessary that we level the playing field and exercising our right to strike does just that."

I disagree. In the industry today the bankrupt airline has a significant advantage negotiating with any union, strike or not. The trail left by US Airways, United and Delta clearly illustrate this. Yes, Northwest has claimed repeatedly that a flight attendants strike could put the airline out of business. That's necessary language to get the bankruptcy court to delay a strike. In the meantime Northwest is (and has been for months) training any office worker that moves to be a flight attendant. Not an ideal situation but it could certainly blunt the effect of a strike. Either way flight attendant jobs are at risk if (a) the airline can survive without them or (b) the airline folds.

OPINION: Northwest Flight Attendants Need Some Spin Control

Note to Association of Flight Attendants representatives at Northwest Airlines, start proofing what you type, watch what you publish, ask your members to be careful what they say in a public forum. I do appreciate the difficult times you face and the pay cuts that are staring you in the face. Not fun...battle on. But the following statement should not have gotten out the door:

"Most of us don't even care about the survival of NWA anymore. How can a company survive under these toxic conditions," flight attendant Kathryn Swarts wrote in a letter to the judge overseeing its bankruptcy.

I think the majority of folks still employed at Northwest Airlines might have an issue with that statement. It comes across as terribly self-serving and isolates you from what should be the common goal...the survival of an airline for the benefit of all who make their living at that airline. Even if that quote is being taken out of context in this article you need to realize that is the risk of saying it in the first place.

NEWS: Surprise! Northwest Needs You

A Northwest Airlines memo announcing plans to recall of all of its furloughed flight attendants and some pilots managed to leaked out yesterday. This is fantastic news for most of these folks and an indicator that business for Northwest is looking better than expected. It is worth noting that there is a decent percentage of flight attendants who took voluntary furloughs. Instead quitting they chose to lay themselves off, maintain a few benefits and see how things went. Northwest has been carrying the cost of keeping these flight attendants current on training, providing flight benefits etc. Now their hand is forced and I wonder if that is part of Northwest's plan. More than one furloughed attendant I have spoken to has mixed feelings about going back to work at this point. Finally, one wonders how this will impact on-going strife between the airline and its flight attendants as they stuggle to hammer out a new union contract. Still its hard not to see this news leak as a positive overall.

NEWS: Northwest Airlines Continues its Losing Ways

Losing ways as in losing money...a lot of it. The latest court filings show the airline has lost $346 million since filing for bankruptcy on Sept 14th. A quick math check tells me that comes out to about $4.4 million a day. I'll say that again...A DAY! If you scrape the normal bankruptcy induced financial chicanery off you still end up with $136 million and that's STILL $1.7 million a day. Sure, fuel costs weigh in heavy but people, really, something else is wrong if your business model cannot compensate for changes in normal operating costs (that would be fuel amongst other things). Airlines have been droning on about fuel costs for a year or more yet no one has figured out how to get around it save Southwest who simply bought a bunch of fuel in advance. Get on with it boys and girls, get this figured out or just admit defeat.